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Battalion Oil Surges Amid New Gas-Treating Agreement

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 2/7/2026, 8:12 am ET 2/7/2026, 8:12 am ET | 5 min 5 min read
Battalion Oil Surges Amid New Gas-Treating Agreement Thumbnail

Battalion Oil Corp’s stocks trade up 16.69% as strategic partnerships spark investor optimism in energy expansion.

Energy industry expert:

Analyst sentiment – positive

Battalion Oil (BATL) currently faces significant challenges in its market position. The company’s financials reveal a troubling profitability picture, with key ratios like the EBIT margin at 2.3% and a net profit margin of -21.8%. Revenue has decreased over the past three years by 20.62%. Valuation metrics indicate a low price-to-sales ratio of 0.22, yet the negative price-to-book of -1.95 indicates potential distress or undervaluation scenarios. Despite a robust EBITDA margin of 34.4%, operational inefficiencies and substantial long-term debt payments have weighed down returns, with alarming metrics such as a return on equity of -657.46%.

Technically, Battalion Oil exhibits a bearish price trend, as evidenced by its recent weekly price movements. The stock struggled to sustain upward momentum, illustrated by declining closes from highs of $3.15 to $2.80 in successive weeks. Volume patterns during the recent dip to $2.46 suggest diminishing buying interest, indicating possible persistent bearish pressure. The stock’s inability to maintain above the $2.90 level further suggests resistance, suggesting that traders should consider short positions, targeting a further decline towards $2.40, with stop-loss orders above $2.90 to manage risk.

Recent developments, primarily the cessation of the Gas Treating Agreement with Wink Amine Treater and the commencement of a new agreement with a large-cap midstream company, have provided a bullish catalyst. The partnership and expanded processing facilities have significantly increased Battalion’s operational reliability and oil production by approximately 1,200 barrels per day. This strategic maneuver has already led to a substantial pre-market stock surge, reflecting investor optimism. However, compared to industry benchmarks, Battalion’s recent operational and strategic improvements position it to outperform only if sustained over the coming quarters. Key resistance stands around $3.20, with support at $2.40, indicating a cautiously optimistic outlook.

  • The recent partnership with a large-cap midstream firm marks a pivotal transition from Battalion’s previous agreement with Wink Amine Treater, which ceased operations due to the closure of the AGI Facility.

  • Battalion Oil’s operational capacity has expanded substantially, with January seeing an increase of approximately 1,200 barrels of oil daily compared to December, reflecting enhanced productivity owing to the new facility.

Candlestick Chart

Weekly Update Feb 02 – Feb 06, 2026: On Saturday, February 07, 2026 Battalion Oil Corp – Ordinary Shares (New) stock [NYSE American: BATL] is trending up by 16.69%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Battalion Oil’s performance aligns strategically with its recent market maneuvers. Despite posting a net income loss of $735,000 for the last reported quarter, the company’s revenue was $43,386,000, overcoming high operational costs. A deeper look into the financial data reveals a gross margin of 100%, but profitability metrics like EBIT margin at 2.3%, with negative figures for pretax and net profit margins, underscore ongoing fiscal challenges. Nevertheless, Battalion has strategically positioned itself by leveraging asset turnover at 0.4 and maintaining a current ratio of 1, reflecting a balanced short-term financial health stance.

The key financial ratios present a paradox of robust operational indicators with challenging profit dynamics, like an operating cash flow of $27,973,000 and a total equity of $191,654,000, offset by a return on assets reflecting -6.79%. The new agreement enhances Battalion’s cash flow potential while also improving its production capabilities, which may mitigate these challenges.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”